June 19, 2018 | Chris Magnani

How Banks Can Optimize the Customer Journey

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Knowing What Impacts Outcomes Makes All the Difference

Imagine this scenario in a banking VP’s office:

Analyst: “I found a way we can boost NPS while cutting costs!”

VP: “Great! What do we have to do?”

Analyst: “All we need to do is improve our digital experience, so more customers can complete their tasks in a digital channel.”

VP: “OK, but which of the hundreds of aspects of our digital experience—navigation, content, site performance, availability of services—do we prioritize, and WHY?”

Analyst: “…”

Every banking leader is aware that digital channels are less costly than an extensive branch network or fully staffed contact center. They also realize that customers, like water, will seek the path of least resistance. According to a recent study by the ABA, 66% of customers prefer to manage their accounts through a mobile or desktop site.

That’s a crystal-clear statistic. But there’s a problem: Customers who start their journey in web or mobile can only complete their initial tasks 50% of the time. What are banks doing wrong?

The Quest for First-Touch Success

The latest ForeSee research shows that customers can accomplish tasks on the first attempt almost 80% of the time when they walk into a branch, and 58% of the time they use the contact center. It’s no wonder these costlier channels remain so important to an overall customer experience—they are vastly more effective in the eyes of the consumer.

Our banking customer journey research also shows that a 10% improvement in digital first-touch success can lead to a savings of $5M per year at credit unions, $9M per year at regional banks, and a whopping $108M a year at national banks.

Given the financial impact digital improvements can have, it’s no surprise that 72% of leaders said that one of their top three strategic priorities in 2018 is “Redesign/Enhance Digital Experience for a Consumer.”

But, to be successful, banks need to answer two key questions when committing to improving digital CX:

  1. What do we do next?
  2. And why do we do it?

ForeSee’s predictive methodology answers these two critical questions, and provides the statistical certainty needed to prioritize strategic investments in the future of an omni-channel customer journey. Our model finds the causal impact that each experience has on improving future behaviors (for example: remaining a customer, buying more products, recommending to a friend, etc).

If that same analyst was looking at ForeSee’s predictive CX modeling, their response when asked what to do next and why would have sounded something like this:

“We need to focus on the navigation in our mobile app because we know that it has 3x the impact on ‘Likelihood to Use a Digital Channel’ as any of the other drivers. Moreover, we know that customers who complete their task on the first try have a 223% higher NPS then customers who fail in their first attempt.”

That’s the power of ForeSee. We help all levels of the organization prioritize and improve the most important drivers of a successful omni-channel experience.

Interested in learning about how much of an impact each aspect of your customer experience has on NPS, C-SAT, or Likelihood to Remain a Customer? Get in touch with us for an overview of our Predictive Model for Financial Services.

About the Author

Chris Magnani is a Regional Manager in ForeSee’s Financial Services Practice. Prior to ForeSee, he worked as a Consultant with the Gallup Organization with a focus on Customer and Employee Experience projects at retail banks and credit unions. Chris enjoys designing data driven interventions for his clients. He holds an MBA in Business Analytics and Marketing from the University of Notre Dame (Go Irish) and a BS in Accounting and Finance from Marist College where he was Academic All-Conference in Football.

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